Quarterly report pursuant to Section 13 or 15(d)

EARNINGS (LOSS) PER SHARE

v3.20.1
EARNINGS (LOSS) PER SHARE
3 Months Ended
May 02, 2020
EARNINGS (LOSS) PER SHARE  
EARNINGS PER SHARE

8. EARNINGS (LOSS) PER SHARE

The Company’s unvested restricted stock awards contain non-forfeitable rights to dividends and meet the criteria of a participating security as defined by ASC 260, “Earnings Per Share”. In applying the two-class method, net income is allocated to both common and participating securities based on their respective weighted-average shares outstanding for the period. Basic earnings (loss) per share is computed by dividing net income (loss) allocated to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing income available to common shareholders by the weighted-average common shares outstanding plus the potential dilutive impact from stock options and restricted stock units. Common equivalent shares are excluded from the

computation if their effect is anti-dilutive. During the first quarter of fiscal 2020, we incurred a net loss and therefore all common stock equivalents were anti-dilutive and excluded from the diluted net loss per share calculation. As a result, the basic and dilutive losses per common share are the same for the first quarter of fiscal 2020. There were 12.7 million and 11.1 million anti-dilutive shares during the first quarters of fiscal 2020 and fiscal 2019, respectively.

The following table sets forth the computation of basic and diluted (loss) earnings per common share (in thousands, except per share data):

13 Weeks Ended

May 2,

May 4,

2020

2019

Basic (loss) earnings per common share:

Net (loss) income

$

(63,505)

  

$

37,691

Less income related to unvested restricted shares

 

 

(39)

(Loss) income available to common shareholders - Basic

$

(63,505)

$

37,652

Weighted-average common shares outstanding - Basic

146,865

157,749

Basic (loss) earnings per common share

$

(0.43)

$

0.24

Diluted (loss) earnings per common share:

 

Net (loss) income

$

(63,505)

$

37,691

Less income related to unvested restricted shares

 

(39)

(Loss) income available to common shareholders - Diluted

$

(63,505)

$

37,652

Weighted-average common shares outstanding - Basic

146,865

157,749

Effect of dilutive stock options and restricted stock units

112

Weighted-average common shares outstanding - Diluted

146,865

157,861

Diluted (loss) earnings per common share

$

(0.43)

$

0.24